The thought of carrying large sums of money while traveling or not having access to your money at all can be nerve-racking. Below I’ve included the best ways to access money based on the length of your trip. I’ve also included my favorite NO FEES credit and debit card.
foreign currency
short term travel 1-2 weeks
When traveling short term the easiest way to obtain foreign currency is through your bank before your trip. Your bank will offer you the best exchange rate whereas third-party companies often shortchange you in order to make a larger profit. Be sure to ask your bank how far in advance they recommend placing your order since shipping times vary. I recommend ordering a few hundred dollars which the bank will deduct from your checking or savings account. The amount deducted from your account will be converted to the currency of your choice. Your bank will then notify you once your currency has arrived and is ready for you to pick up. If you need additional cash during your trip an ATM can be found almost anywhere. Using an ATM does carry fees (more info below) so be sure to withdraw larger sums less frequently to keep fees to a minimum.
extended travel
3+ weeks - atm fees and how to avoid them
When using an ATM abroad, your bank will most likely charge you a $5 fee in addition to a foreign transaction fee (3% of the converted US dollar amount) per withdrawal. You may also be charged an additional fee by the ATM for using its services.
What does this mean for you? If you are withdrawing $100, you will be charged A $5 ATM fee by your bank, $3 in foreign transaction fees, and possibly a secondary ATM fee of $5. This means you will be charged $13 for withdrawing $100 from your bank account. If you are traveling for 3+ weeks, ATM fees can add up quickly which is why I use a debit card with no ATM and foreign transaction fees so that I can withdraw as frequently as I like. Below I’ve included my favorite credit card and debit card that allows you to avoid all fees.
cash versus credit card
While traveling, making purchases on a credit card will provide peace of mind since you won’t be carrying large sums of cash. Another bonus arrives at the end of the month when you receive a detailed statement of every purchase. When making purchases with cash, we tend to lose track of spending so having a detailed statement of purchases will help you better understand your spending habits for future trips.
In addition to the amount you pay for the item purchased, most credit cards charge a foreign transaction fee (3% of purchase amount) which is why I have a credit card with no fees that I pay in full at the end of the month.
As much as I prefer to use a credit card while traveling, in smaller cities, sometimes cash is the only form of payment accepted. Even in bigger cities, most mom-and-pop shops don’t offer credit card machines. The same goes for taxis and most buses, which is why I always have some cash on hand, just in case.
the best credit card
no foreign transaction fees
I have an Amazon Prime account and an Amazon Prime Rewards Visa Signature Card and couldn’t be happier. You don’t need to have a Prime account to apply for their Visa Signature Card, however, the benefits are more rewarding if you do.
A regular Amazon account is free and allows you to apply for the Amazon Rewards Visa Signature Card. If you decide to upgrade your free Amazon account to a Prime account, it’s $14.99/month or they have a yearly option, either way, the benefits are awesome. You receive free 2-day shipping on 100 million items as well as same-day or next-day shipping on a variety of others. They offer a large selection of TV shows and movies to stream free of charge, in addition to free monthly books that can be downloaded to your Kindle. You also have access to their music library of 2 million songs which can be listened to ad-free. A prime account has so many benefits and the best part is they offer a Free 30-Day Trial.
Visa Signature Card Benefits:
- 5% back on Amazon purchases with an eligible Prime membership (otherwise you earn 3% back with the free Amazon account)
- 5% back at Whole Foods Market and Amazon Fresh
- 2% back at restaurants, gas stations, and on local transit and commuting
- 1% back on all other purchases
- 10% back on rotating categories
With 5% back, this card is amazing if you frequently make purchases on Amazon. When ordering, my purchase total is typically $0 since I usually have enough points to cover the entire purchase.
The Visa Signature Card offers no foreign transaction fees which means you are only charged for the items purchased while traveling. They also offer a variety of other travel benefits, here are just a few..
- Travel and emergency assistance
- Travel Accident Insurance
- Lost luggage reimbursement
- Auto rental collision damage waiver
- Baggage Delay Insurance
SIGN UP FOR AMAZON REWARDS VISA SIGNATURE CARD HERE
the best debit card
no foreign transaction or atm fees
The best way to avoid those pesky foreign transaction and ATM fees that I discussed earlier is with a debit card from Charles Schwab. Let me start by saying this is not a “traditional bank” but more of a brokerage firm. What that means is you are unable to deposit or withdraw cash from a branch since there are no bank tellers (everything is done electronically through online banking).
I’ve always banked with a traditional bank so I was initially a bit skeptical about going this route. After doing extensive research and reading several positive reviews, I decided to open an account (which I’ve now had for several years). I’m happy I made that decision because this card has been great while traveling through Europe for a month at a time (one or more times a year).
When opening my account, there was a Charles Schwab branch close to my home so I was able to complete the sign-up process in person. There were computers located near the entrance that were “self-serve” so technically I could have completed the process at home on my computer, however, I found comfort in going into a branch since I was new to this type of banking. There was a woman at the reception desk who was available to answer my questions, and overall, the process was fairly simple.
As I mentioned, Charles Schwab does not deal with physical cash but you can link your regular bank account to your Charles Schwab account to transfer funds (through their secure website) Another option is to write a check from your regular banking account (Chase, Bank of America etc.) for the amount you would like to deposit into your Charles Schwab account and bring it in person which is what I did during my physical Charles Schwab branch visit. After having an account for years now, visiting a brance is some what useless since everything can be done via their website and over the phone. You can complete the process of opening an account online here.
Account benefits:
- No foreign transaction fees
- No ATM fees which means you can withdraw cash from any ATM in more than 200 countries and territories worldwide
- No minimum account balance requirement
- 0.15 annual percentage yield
The one caveat of opening a Charles Schwab High Yield Investor Checking Account is that it’s technically an “investor checking account” which means they require the account to be linked to their Schwab One Brokerage Account. If you hear the term brokerage account and think, wait.. huh?.. you’re not alone. When opening my account, I had no experience with stocks or investment accounts so let me quickly explain how it works. When opening your account, the money you deposit (the first time) will automatically be added to your Schwab One Brokerage Account but all you need to do is transfer that money from the brokerage account to your Charles Schwab High Yield Checking Account (which is automatically linked) and then you’re good to go with using your card as you would any debit card.
Using the Charles Schwab account as my “everyday account” (when not traveling) seems a bit tedious since it’s all done electronically and I’m unable to walk into a branch to deposit cash and checks (I’m old school) so I have chosen to continue banking with my primary bank. I plan on teaching myself the ins and outs of the Charles Schwab brokerage account, #adulting but in the meantime, I keep the Charles Schwab High Yield Investor Checking Account as my “travel account” and keep all of my other accounts (primary checking, savings, business, etc.) with my regular bank.
How does that work? I deposit into my Charles Schwab checking account just enough money to cover expenses during the entire length of my trip so that I have access to cash at any ATM worldwide (with no fees). Any money left over from my trip is kept untouched in the account, ready for my next trip. Most banks offer an annual percentage yield of 0.01% but with Charles Schwab, it’s 0.15% which means the money left in your account after each trip accumulates a bit more interest, which is nice.
As I mentioned, this card offers no ATM fees which is done with “ATM Fee Rebates”. What that means is you will be charged the ATM fee while you are traveling (don’t be alarmed if you see these charges on your account), then at the end of the month all fees are automatically credited back to your account. Essentially, there are no ATM fees, it’s just handled in a slightly different way.
SIGN UP FOR A CHARLES SCHWAB ACCOUNT HERE
information over load?
here is a quick (to the point) recap
If you are traveling for 2 weeks or less, order currency at your bank prior to your trip and visit an ATM as needed. There will be fees so withdraw larger sums of cash, less frequently, to keep fees to a minimum.
If you are traveling for 3+ weeks or are a frequent traveler, I suggest applying for the Amazon Rewards Visa Signature card and the Schwab Bank High Yield Investor Checking Account. Traveling with both of these cards (one credit card and one debit card) will allow you to avoid any and all fees.